FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Financial Statements,tools,and Budgets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following would be classified as a long-term liability?

A) Credit card debt
B) Bank card debt
C) Education loan balance
D) All of these

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Janice Leno has the following assets and debts listed on her balance sheet: ​ Janice's asset-to-debt ratio is

A) 3.55
B) 2.54
C) 3.96
D) 0.29

E) A) and D)
F) All of the above

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

A short-term goal is one that is projected to be achieved within how much time?

A balance sheet describes an individual's financial progress over a period of time,generally a year.

A family with two income earners will always need a greater amount of cash reserves than a family with one earner.

The major purpose of budgeting is to reach your financial goals.

A debt-to-income ratio of 0.36 or less is considered manageable for most families.

It is usually easy to reduce a fixed expense.

Cindy Estrada is applying for a loan and the bank has asked her for some financial information.Use the following data to calculate Cindy's net worth.

Most people keep track of their finances on a cash basis rather than on an accrual basis.

In general,tangible assets do not depreciate in value over time.

The best method to control overspending is to regularly monitor unexpended balances in each budget classification.

The primary purpose of setting long-term financial goals is to help

Discretionary income is the money people use to pay for the necessities of life.

Checking account statements provide a source of information for the value of

Savings set aside can be categorized as both fixed and variable expenses.

A net surplus in your monthly budget cannot be carried forward to the next month.

Which of the following is the best example of a well-stated financial goal?

Blaine and Lindsay McDonald have total assets valued at $346,000 and total debt of $168,000.What is Blaine and Lindsay's asset-to-debt ratio?

Budgeting is narrower in scope than overall financial planning as it is primarily concerned with projecting future income and expenditures over a period of time.